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Starting as a joke, the popular Dogecoin—the Shiba Inu-faced cryptocurrency—is having a rough time. The DOGE community has been rocked by a recent $16 million sell-off by a big holding, most likely a “whale” investment, which begs doubts on the long-term survival of the meme coin.
Mags Charts A Worrying Course
For DOGE, crypto analyst Mags has become the gloom messenger. Mags notes several phases in the past price swings of Dogecoin using a self-developed graphing technique. Phase 3, according to Mags, presents a particularly dismal picture and suggests a possible zero plunge.
The analyst argues, bluntly, the meme coin is “bearish” and will soon be worthless.
$DOGE is bearish and is going to zero.
don’t belive me? see for yourself 👇 pic.twitter.com/p4jYYDlbLZ
— Mags (@thescalpingpro) June 12, 2024
This forecast depends on DOGE’s cyclical character, whereby short price swings are followed by longer periods of declining trend. Although Phase 3 could see a brief surge above $1.70, Mags advises readers to remain cautious of such ephemeral hope.
Technical Indicators Flash Red
Technical indications show alarming picture even with a recent 4% price boost. Reflecting investor uncertainty, the Relative Strength Index (RSI) lays exactly in neutral territory, neither overbought nor oversold. More significantly, DOGE is now trading below its main moving averages; the last line of protection around $0.123 comes from the 200-day EMA. A violation of this support level can set off a chain reaction that sends DOGE plummeting even more towards the $0.07 mark.
Can Dogecoin Defy The Odds?
Mags’s study and technical signals throw a lengthy shadow, yet the meme coin has some potential. The current increase in trade volume points to more activity, maybe signalling a buying frenzy among devoted DOGE owners. Furthermore passing the initial resistance level of $0.14 could indicate a possible turnabout. But this hopeful picture depends on breaking historical patterns and calls for a major change in market attitude.
The course of Dogecoin is yet unknown. Relatively silent recently is Elon Musk, the self-described “Dogefather” and big impact on the price of the meme coin. DOGE lacks a significant driver for a continuous climb upwards without his typically optimistic tweets.
Dogecoin Price Forecast
Concurrent with this, technical analysis by CoinCodex suggests that Dogecoin’s price will drop 13%, to $0.12 by July 13, 2024. The present attitude is bearish, implying general expectation of declining price movement. Still, the Fear & Greed Index comes at 70, suggesting a strong degree of Greed among investors.
With 14 out of 30 green days over the last 30 days, Dogecoin boasts a 47% success record in favourable price moves. With a 5.10% observed price volatility during this period, its market price clearly varies significantly.
This increased volatility and negative attitude imply that Dogecoin might see more price falls, even if investor optimism shown by the Fear & Greed Index could cause brief price recoveries.
Featured image from CSF Hungary, chart from TradingView
